Getting Paid: Know Your Value
Last week, I wrote about the importance of Advocates to your business and your personal brand. On Friday, I had the opportunity to meet with one of my professional advocates who kindly met me near my dogs’ daycare so he could see my dogs and enjoy some of the unabashed love dogs are famously known for delivering.
In addition to his engagement on something important to me (my dogs), he shared his views on “value” and getting paid for your personal value. What a perfect segue into this week’s Blog!
Like it or not, commerce depends on money. Each of us needs a steady stream of income to cover essentials as well as the extras we choose for ourselves. For me, that would be my dogs and the many activities they require for an enriching life, such as training, daycare, grooming, titled sports. None of these are free. You may have children, eldercare, family, pets or all of these at any given time. Clearly, money is a factor on what jobs you choose to work. And, if a business owner, you need to evaluate which jobs you may take on or which you may pass as the profitability you seek for those in your life may not make it worthwhile to accept that job, that customer, that client.
We each have our own personal value that is a result of the personal brand we have built. Knowing your value and proudly proclaiming that value in the Proposals you may be asked to submit is essential to propelling your business forward. If someone expects your services to be free, or tries to tell you that your value is more than they are willing to pay for, move on. It is not your issue that they do not want to pay for your services. Offering a future reference or hopeful referrals for future work when they have more funds, is not payment. Hope or a Promise is not a substitute for currency. It does not buy groceries or pay a car payment. Offering to help someone who has performed good work for you is a natural courtesy that occurs in the course of doing business with others.
I was recently asked to provide a Letter of Reference for one of my Business Advisors. It took me 10 minutes to write and email it. I value the work that particular Business Advisor provided for me and I was happy to write a reference and I would never ask them to not charge me on future work because I wrote a reference for them. And as a result, this advisor is always quick to jump on any of my inquiries or additional work. Treat others as you would like them to treat you. If you do not expect to be paid then make it clear you will not pay them either. But I have yet to meet anyone who does not expect to be paid on jobs where their intellectual property, their experience, their licensing, if applicable, are required. Intimating such a thing could insult someone to the point that you have now put your personal brand in jeopardy of reputation risk. You never want to be known as the individual, the practice, the corporation that does not pay. Your customers or clients may be few and far between then.
Defining your value is research you should partake of up front. Research your competitors, search online for expected fees, attend trade seminars. While there is often the ability to “discount” services to take on a client you have been pursuing for a length of time, or a new market you wish to break into, that should not be perceived as a strategy on how to conduct all of your business, rather a tool to expand your business.
And in the case of professionals, there was a time when costs could be tax deductible if performing them on a Pro-Bono or Free basis. However, now the IRS guidelines state from IRS.gov: "Although you cannot deduct the value of your time or services, you can deduct the expenses you incur while donating your services to a qualified organization." ... Your professional time is not tax deductible.” And that professional time is your worth, your personal brand’s value. So, if an organization wants you to “donate” your time, understand it is just that, a free donation. If you employed that philosophy in all your projects, the ability for your firm to be an ongoing concern would be severely jeopardized.
As you work through your annual business plan, remember to promote your personal value and stay true to yourself. If you do not believe your service or your product is worth the asking price, no one else will. And steer clear of those with a hand out, or wanting “to pick your brain”, or asking for a “favor” ALL the time. They clearly do not value your personal worth and your time can likely be better spent with those who do.
Using my own personal experience above, if they offer to meet you and walk your dogs into daycare with you, they are an Advocate who knows your worth and is proud to advocate for it. If they tell you they do not like dogs, walk your own dogs into daycare and find someone who celebrates the love of the dog as much as you do. Trust me, they are out there. You may need to look a bit harder, but in the end, that wagging tail will be worth it!
